Top Performing Dividend Payers in Consumer Goods with the Most Upside Potential (CTB, MOV, OXM)
It is not unusual for stocks on a tear to the overrun their mean price targets, which is a signal of how far analysts on average expect the share price to climb. Many of the top performing dividend payers in the consumer goods sector over the past six months, such as B&G Foods (NYSE: BGS) and Tootsie Roll Industries (NYSE: TR), have done just that. Others are at or near their mean price targets.
But analysts believe that Cooper Tire & Rubber (NYSE: CTB), Movado Group (NYSE: MOV) and Oxford Industries (NYSE: OXM) still have some room to run, despite rising more than 20 percent in the past six months.
Cooper Tire & Rubber
This Findlay, Ohio-based manufacturer of replacement tires has market capitalization of about $1.2 billion and a dividend yield near 1.9 percent. The return on equity is a healthy 52.1 percent and the price-to-earnings (P/E) ratio is less than the industry average. But the long-term EPS growth forecast is less than eight percent. Short interest is more than six percent of the float. Four of the six analysts surveyed by Thomson/First Call who follow the stock recommend buying shares; none recommend selling. The mean price target is about 25 percent higher than the current share price, which pulled back about nine percent last week following an analyst downgrade. Over the past six months, the stock has outperformed rival Goodyear Tire & Rubber (NYSE: GT) and the broader U.S. markets.
Movado designs and markets fine watches, and it has a market cap of less than $1 billion. Its P/E ratio is higher than the industry average, but so is its operating margin. EPS creamed analysts' estimates in the most recent quarter, and they are forecast to grow about 12 percent in the next five years. Short interest is less than six percent of the float. All three analysts surveyed rate the stock at Buy or Strong Buy. Their mean price target is more than six percent higher than the current share price, as well as higher than the 52-week high. Movado is up about 96 percent year to date and has outperformed the likes of Fossil (NASDAQ: FOSL), Luxottica (NYSE: LUX) and Coach (NYSE: COH) over the past six months.
This apparel maker is headquartered in Atlanta and sports a market cap of less than $1 billion and a dividend yield of about one percent. The P/E ratio is higher than the industry average but forecast to come down. Both the long-term EPS growth forecast and the return on equity are about 15 percent. The short interest in Oxford is about four percent of the float. All seven analysts polled recommend buying shares, but their mean price target is only about two percent higher than the current share price. The stock reached a new 52-week high on Friday and is up about 35 percent year to date. Over the past six months, Oxford has outperformed competitors such as PVH (NYSE: PVH) and Ralph Lauren (NYSE: RL), as well as the broader markets.
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